FOMC cuts rates for third straight meeting

The Federal Open Market Committee (FOMC) lowered the target range for the federal funds rate by a quarter point for the third meeting in a row Wednesday, down to 3.5% to 3.75%. Federal Reserve Chair Jerome Powell said indicators suggest that economic activity has been expanding at a “moderate pace,” with slowing job gains, edging up unemployment, and inflation rising since earlier in the year and remaining somewhat elevated.

"The FOMC cut rates for the third meeting in a row, but signaled a higher bar for further moves in 2026. Six of 19 members indicated on their forecasts that they opposed a rate cut at this meeting, and seven believe rates should not decline in 2026,” said America’s Credit Unions Chief Economist Curt Long. “However, the committee also expects unemployment to decline next year alongside moderating inflation. For the hawkish faction, it will likely take a meaningful rise in unemployment to justify more rate cuts next year."